Virgin Mobile

Group 9

Arjun Batra 08FT-010Gaurav Singhal 08FT-016Rajeev Vishwanath 08FT-034Rohit Dhuwad 08FT-037Sippu Rout 08FT-050

About Virgin Mobile

Virgin Groupone of the world's most recognized and respected brands

Tata Tele Services Ltd. (TTSL)one of India’s leading private telecom service providers

offers integrated telecom solutions under the TATA Indicom brand

uses the latest CDMA technology for its wireless network

Virgin Mobile India - Virgin-TTSL joint venture:a ‘brand franchise’ agreement with TTSL

and not operating as MVNO

Targetbreak even in 3 years, at a subscriber base of 5mn

Market Analysis - STP

Segmenting215 million Indians aged between 14 and 25 years

75.17 pc of mobile service market shared by GSM operators

Calling vs VAS

Targeting Youth Segment70 mn own mobile phones in this age group

Addition of 50 mn new mobile phone subscribers in next 3 years

account for less than 30 pc of the total, but contribute over 50 pc of the telecom industry's Rs 500mn , expected to reach 350mn

95 pc of young users are pre-paid subscribers, run out of both talktime and recharging money by the month-end

VAS to be next in thing with maximum revenue

PositioningAs a Youth Brand – “Think hatke”

VAS in India

Current Marketing Strategy: 4Ps

Product:connection provided by Virgin and supported by TTSL - vBling

CDMA handsets with RUIM – vSleek, vTrendy, vKewl

Price:Service Pricing – Get paid to receive calls, outgoing calls from virgin costs 50 paise per minute after 2 minutes

Handset Pricing – at about half the price, Style + Value at low cost

Place:dealers in 47 cities covering all Tier – I cities and major Tier – II cities

Virgin Mobile branded products and services online

Promotion:find a way around, rather than a way against / Think hatke

Buzz marketing to get initial attention, followed by attitude based promotion

Challenges in achieving the goals

Number portability:difficult to convert existing non-VM subscribers

limited to CDMA technology and in turn to limited handsets:difficult to attract subscribers preferring GSM handsets

strategy and offerings are yet to be time-tested:difficult to continue the initial buzz created

Mobile Service – Value Chain

Platform

Providers

Device Manufacture

r

Network

Operator

Content Provider

Core Competen

cy

End User

Virgin Mobile

Proposed Marketing Strategy

Communicate clearly about the value proposition'VAS targeted to youth' from lame 'think hatke' tag-line

Need based instead of generic

VAS with local content in vernacular language‘Content is king’ in VAS – connect and sell

Attractive formats like 'Get paid per use' strategy in VAS using Mobile marketing

compensate by third party advertisement

Venture into GSM sector through TTSL or other strategic alliances

Target upcoming fields like m-banking, m-commerce, m-governance

Implementation issues

VAS with local content in vernacular languageMore strategic alliances with content developers

Need based content development

'Get paid per use' strategy in VAS using Mobile marketingSubscriber base will decide attractiveness for third-party advertiser

Proper revenue sharing model to be developed

Venture into GSM sector through TTSL or other strategic partnershipTTSL has already talked to DoCoMo for GSM operations

Need for new partnership model

Target upcoming fields like m-banking, m-commerce, m-governanceUser awareness

security

Marketing Audit Plan

Surveys targeting youthAwareness about VAS

Awareness about VM’s brand position

Feedback from retail outlets and distributorsTo find out trends after implementation of proposed strategies

Virgin Mobile - Schemes

THANK YOU